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"This may be called the cunning of reason, – that it sets the passions to work for itself..." - Georg Wilhelm Friedrich Hegel, German Philosopher

Hegel postulated that historical progress often uses the selfish, chaotic, and individual passions of people to achieve a higher, universal, general applicability without those individuals realizing it (think Elon musk building Tesla, advancing the development of the EV industry).

In markets, this is the twin to Adam Smith's "Invisible Hand." The chaotic greed, panic, and speculation of individual day traders and hedge funds are ultimately harnessed by the market (the "Cunning of Reason") to provide liquidity, discover prices, and efficiently allocate capital across the global economy.

Mar 24
at
5:25 PM
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